Jet Fuel Prices Rise 10%: Airlines Face Higher Costs Under New Stabilisation Scheme

Jet fuel prices in India have been raised by around 10% under a new government-backed price stabilisation mechanism, potentially making air travel costlier. Airlines now have the option to lock in aviation turbine fuel (ATF) prices for up to three years, offering protection from further volatility. However, carriers choosing not to opt into the scheme will pay market-linked rates, which are currently significantly higher. The move is expected to influence airline operating costs and could lead to upward pressure on airfares if fuel prices remain elevated. Richa Sharma explains how the numbers impact airline margins and pricing decisions, and what choices carriers may make under the new framework. The aviation sector is now closely watching demand and global oil trends.